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South Hams Lib Dems to campaign against proposed councils merger

The merger of South Hams District and West Devon Borough would take effect from 2020, and if the move goes ahead, it will mean council tax rates will rise for residents in the South Hams

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by Daniel Clark

09:22, 11 Aug 2017Updated13:14, 23 Aug 2017

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Council Tax

Liberal Democrats are leading a campaign against plans to merge two Devon councils.

Councillors from South Hams District and West Devon Borough councils agreed at meetings last month to put a proposal to create single new council to a public consultation.

The merger would take effect from 2020, and if the move goes ahead, it will mean council tax rates will rise for residents in the South Hams.

But Lib Dems in the South Hams say the merger would result in a “massive” increase in council tax for South Hams residents.

However, Cllr Michael Saltern, Ivybridge West Conservative councillor, said the opposition was founded on out-of-date information and the increase would be modest.

Government budget cuts have put local authorities under increasing financial pressure. The reduction in government funding, known as revenue support grant, and the councils’ share of business rates has been reduced by £4million in South Hams and £3million in West Devon since 2009/2010.

The councils have been sharing services since 2007, saving them £6 million a year. But they still face a combined budget gap of £1.9 million a year after 2020, as government money dries up further.

South Hams predicts creating a single council could save up to £500,000 a year, not counting higher income from an increase in council tax.

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At the full South Hams council meeting last month, Lib Dem councillors spoke and voted against the proposed merger on the grounds that South Hams taxpayers would suffer financially with no reward or benefit to the area.

Cllr John Birch (Lib Dem, Totnes) said: “South Hams District Council will be asking council taxpayers to pay millions of pounds to rescue West Devon.

“I was not elected to impose a massive council tax increase to save an ailing council.”

Cllr Saltern said the Department for Communities and Local Government had agreed that equalisation of council tax rates could take up to ten years.

Over that period, equalisation would cost council taxpayers an extra £6.30 a year, on top of any normal increase.

The Lib Dems will hold an open meeting at the Royal Seven Stars Hotel in Totnes at 7pm on Thursday, August 24, to explain the merger and the reasons for their opposition.